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Permanent Impairment Compensation
Military Rehabilitation and Compensation Act 2004
Chapter 4 Part 2
Section 67 (Guide to determining impairment and compensation)
Section 68 (entitlement to compensation for permanent impairment)
Section 71 (additional permanent impairment compensation)
Section 74 (amount of compensation)
Section 75 (interim compensation)
Section 78 (choice to take a lump sum)
Military Rehabilitation and Compensation (Consequential and Transitional Provisions) Act 2004
Section 13 (Bringing across impairment points from a VEA or SRCA injury or disease)
Stated Current Purpose/Intent
Permanent impairment compensation is a tax-free, non-economic loss payment to compensate a member or former member for permanent impairment arising from injury or disease for which liability has been accepted.
It can be paid as a periodic payment (a maximum weekly amount of $324.60), a lump sum payment based on the weekly amount or a combination of the two. Lump sum payments are age-based, that is, for a given level of permanent impairment they are constant up to age 30 for males and age 35 for females and will reduce after those ages according to a formula provided by the Australian Government Actuary. The degree of impairment is assessed using a modified version of GARP V used for VEA claims. The assessment guide specifies different methods for combining the impairment points and lifestyle rating for conditions related to warlike and non-warlike service as opposed to conditions related to peacetime service.
Current Eligibility Criteria
To be eligible a person must have an injury or disease:
- which has been accepted as related to service in the ADF rendered on or after 1 July 2004 which results in a permanent impairment; and
- the level of impairment for all compensable injuries and is assessed at 10 points or more (or five points for hearing loss, loss of fingers or toes, and loss of taste or smell)
- Interim compensation is payable where the level of permanent impairment cannot be ascertained because the condition has not stabilised. The amount of an interim impairment payment is determined on the best estimate of the final level of impairment and from 1 July 2013 include an imputed lifestyle effects.
- Additional permanent impairment compensation is payable where permanent impairment from accepted injury or disease worsens or where liability for another injury or disease resulting in a permanent impairment is accepted. Additional permanent impairment compensation is payable where permanent impairment has increased by 5 points or more.
- The above rate of payment is applicable as at 1 July 2014 and is indexed annually on 1 July.
Date of Introduction
1 July 2004
The original intention has not changed.
Significant Changes in Criteria or Purpose Since Introduction
Clean energy advance payable for the period 1 July 2012 to 30 June 2013 for eligible recipients.
Clean energy supplement commenced 1 July 2013 for eligible recipients.
In response to the Review of Military Compensation Arrangements, from 1 July 2013 several changes were made to permanent impairment compensation:
Clean energy supplement replaced by energy supplement commenced 20 September 2014.